Canwest Registers Another Record-breaking Year - Part 1 of 2 - Financial Tables to Follow.WINNIPEG Winnipeg, city, Canada Winnipeg (wĭn`ĭpĕg), city (1991 pop. 616,790), provincial capital, SE Man., Canada, at the confluence of the Red and Assiniboine rivers. , Manitoba--(BUSINESS WIRE)--Nov. 14, 1996-- CanWest Global Communications CanWest Global Communications Corp. TSX: CGS TSX: CGS.A NYSE: CWG is one of Canada's largest international media companies. The company's head office is situated in Winnipeg, Manitoba, at the tallest building (CanWest Global Place) in the city and it is on the Corp. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : CGS CGS centimeter-gram-second system. CGS or cgs abbr. centimeter-gram-second system. CGS, c.g.s. .S., NYSE NYSE See: New York Stock Exchange : CWG CWG Conversations with God CWG Core Working Group CWG Certification Working Group (WiMAX Forum) CWG Collaboration Working Group CWG Commercial Working Group (TAT-14) .) CANWEST REGISTERS ANOTHER RECORD-BREAKING Adj. 1. record-breaking - surpassing any previously established record; "a record-breaking high jump"; "record-breaking crowds" best - (superlative of `good') having the most positive qualities; "the best film of the year"; "the best solution"; "the best time for YEAR - Net earnings up 45 percent over prior year on 30 percent increase in combined EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ; - Q4 results up across the board from comparable period in 1995 CanWest Global Communications Corp., one of Canada's leading multinational television broadcasters, today reported record-breaking financial results for the year ended August 31, 1996. Buoyed by a 13.7 percent gain in combined revenue from the Company's broadcasting operations in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of , Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. and New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. , combined operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. before amortization (EBITDA) was up 30.3 percent in fiscal 1996. Earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the in 1996 increased by 27.6 percent over fiscal 1995, while final net earnings were up 45.2 percent over the prior year. Earnings per share from continuing operations were $0.75 per share in fiscal 1996, up 25.6 percent over fiscal 1995. Per share results in 1996 reflect a greater number of shares outstanding following completion in June 1996 of the Company's international offering of shares. Combined cash flow from continuing operations rose 41.3 percent this year. -0-
COMBINED FINANCIAL RESULTS
(in thousands of Canadian dollars)
Year Ended Three Months Ended
August 31 August 31
1996 1995 Percent 1996 1995 Percent
Change Change
Revenue
Canada 325,197 297,773 9.2 62,516 58,705 6.5
Australia 259,408 215,470 20.4 66,774 57,458 16.2
New Zealand 43,413 38,925 11.5 11,477 9,844 16.6
--------- -------- ----- -------- ------- -----
628,018 552,168 13.7 140,767 126,007 11.7
--------- -------- ----- -------- ------- -----
Broadcast operating
profit before
amortization
Canada 113,130 90,300 25.3 13,016 11,371 14.5
Australia 91,158 69,477 31.2 22,483 17,340 29.7
New Zealand 14,079 7,544 86.6 3,284 1,822 80.2
--------- -------- ----- -------- ------- -----
218,367 167,321 30.5 38,783 30,533 27.0
--------- -------- ----- -------- ------- -----
EBITDA 206,318 158,344 30.3 35,379 29,190 21.2
Earnings from
continuing
operations 105,589 82,757 27.6 23,098 20,623 12.0
Net
earnings 102,170 70,383 45.2 18,723 12,755 46.8
Cash flow from
continuing
operations 137,163 97,067 41.3 30,328 19,026 59.4
Earnings per share from continuing operations
- Basic $0.75 $0.60 25.0 $0.16 $0.15 6.7
- Fully
diluted $0.74 $0.59 25.4 $0.15 $0.15 --
Cash flow per share
- Basic $0.98 $0.70 40.0 $0.21 $0.14 50.0
- Fully
diluted $0.96 $0.69 39.1 $0.20 $0.14 42.9
Commenting on yet another year of exceptional results, I.H. Asper, O.C., Q.C., Chairman and Chief Executive Officer said: "We stated last year that we expected even greater achievements in fiscal 1996, and the results being announced today have proven that prediction to be true. This marks the 10th consecutive year that the Company has set new records in the key categories of revenue and operating profit before amortization, and the sixth straight year records have been established in earnings from continuing operations, net earnings and cash flow from continuing operations." Revenue from all three of CanWest's operating divisions was once again up significantly, "an outstanding accomplishment given the softer advertising markets in Australia and New Zealand, and the competition for audience from the Olympic Games Olympic games, premier athletic meeting of ancient Greece, and, in modern times, series of international sports contests. The Olympics of Ancient Greece Although records cannot verify games earlier than 776 B.C. in all of our markets during the fourth quarter," Mr. Asper said. "We are especially pleased at the continued growth of Network Ten and TV3," he added. "Both networks recorded strong gains in revenue and EBITDA. Our recent announcements of the purchase of an additional 50 percent interest in TV3 and the awarding of a new network broadcast licence to TV3 mean that we are well positioned for another outstanding year in fiscal 1997 in the Australasia region." RECENT EVENTS In addition to the excellent year-end results, CanWest has reported several other significant milestones in recent weeks which enhance the positive outlook for 1997. In September, CanWest announced that it would be entering the field of cable network broadcasting, starting up the Prime TV specialty cable channel in Canada. CanWest's new channel is expected to begin broadcasting in September 1997, or as soon thereafter as cable carriage can be negotiated. "Prime TV launches us in a new, but complementary direction, one on which we intend to build, domestically and eventually, internationally. We believe very strongly in the public demand for this new program service," Mr. Asper said. In early October, CanWest announced that TV3 had been granted a broadcast licence to operate a new urban-focused television network in New Zealand. To be launched in the Fall of 1997, the new free-to-air network will broadcast on the VHF (Very High Frequency) The range of electromagnetic frequencies from 30 MHz to 300 MHz. frequency band, thereby ensuring that most New Zealand viewers will be able to receive the new signal without having to make changes to their existing aerials. "The new network will be programmed and marketed to enhance TV3's existing business, while benefiting substantially from TV3's current operating and promotional activities, both of which are critical in the start-up Start-up The earliest stage of a new business venture. phase of any new television operation," said Gerry Noble, CanWest's Vice-President, Operations. On the heels of this announcement came word that CanWest had entered into an agreement to acquire Westpac's 50 percent interest in TV3 effective April 1, 1997. On completion of the acquisition, CanWest will own 68 percent of TV3's shares, with options over the remaining 32 percent. Earlier this week, CanWest announced that it had sold its 50 percent interest in Chile's La Red Television Network for US$9.5 million. The sale of La Red has no impact on CanWest's earnings from continuing operations, as La Red has been treated as a discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. . The loss on disposal, net of income tax recoveries, of C$4.4 million has been included in the 1996 year end results. The La Red loss was offset in part by a gain of $957,000 on disposal of the company's investment in Talk Radio UK in November 1995. FORWARD LOOKING COMPANY Since its inception more than 20 years ago, CanWest's main thrust has been to expand its core television broadcasting businesses -- nationally and internationally. "We announced two major initiatives this year with respect to TV3 in New Zealand and we are well positioned for further expansion," Mr. Asper said. "In Australia, we are continually con·tin·u·al adj. 1. Recurring regularly or frequently: the continual need to pay the mortgage. 2. looking at opportunities and ways of expanding our presence there. In Canada, although the CRTC CRTC Canadian Radio-Television & Telecommunications Commission CRTC Combat Readiness Training Center CRTC Cathode Ray Tube Controller CRTC China Railway Telecommunications Center CRTC Cold Region Test Center CRTC Continuously Regenerated Trap Column rejected our applications for new television stations in the province of Alberta, that decision has been appealed to the Federal Cabinet. We have asked Cabinet to set aside the CRTC decision and re-hear our applications. However, we do have a new licence for a specialty cable channel, and as of this writing, we have two important applications before the CRTC (Victoria and Quebec) which, if approved, would add significantly to the growth of the CanWest Global System. "CanWest has always been, and will always remain a forward looking company," he added. "That's been our approach over the years, and we will continue striving to build a bigger and stronger television broadcasting company Noun 1. broadcasting company - a company that manages tv or radio stations company - an institution created to conduct business; "he only invests in large well-established companies"; "he started the company in his garage" both nationally and internationally." CanWest Global Communications Corp. (NYSE: CWG and TSE: CGS.S and CGS.A) is a leading international television broadcaster. In Canada, the Company owns and operates the CanWest Global System, Canada's largest private sector broadcaster. Internationally, the Company owns substantial economic interests in Australia's Network Ten and New Zealand's TV3. Through these broadcasting operations, CanWest reaches approximately 35.8 million English-speaking people in markets that are estimated to have generated approximately C$4.4 billion in advertising expenditures in 1995. CONTACT: CanWest Global Communications Corp John E. Maguire, 204/956-2025 204/947-9841 (FAX) |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion